Asked by
Ronald Creech
on Oct 19, 2024
Verified
The choice of an active portfolio management strategy rather than a passive strategy assumes ________.
A) the ability to continuously adjust the portfolio to provide superior returns
B) asset allocation involving only domestic securities
C) stable economic conditions over the short term
D) the ability to minimize trading costs
Active Portfolio Management
A strategy where managers make specific investments with the goal of outperforming an investment benchmark index.
Passive Strategy
An investment approach that involves holding a diversified portfolio to match the performance of a market index over time, minimizing buying and selling actions.
- Acquire knowledge on strategies in investment management, distinguishing between active and passive portfolio management techniques.
Verified Answer
RA
Learning Objectives
- Acquire knowledge on strategies in investment management, distinguishing between active and passive portfolio management techniques.
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